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Abbott Laboratories (ABT)ABT
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Upturn Advisory Summary
11/29/2024: ABT (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: Consider higher Upturn Star rating |
Historic Profit: -0.79% | Upturn Advisory Performance 3 | Avg. Invested days: 39 |
Profits based on simulation | Stock Returns Performance 1 | Last Close 11/29/2024 |
Type: Stock | Today’s Advisory: Consider higher Upturn Star rating |
Historic Profit: -0.79% | Avg. Invested days: 39 |
Upturn Star Rating | Stock Returns Performance 1 |
Profits based on simulation Last Close 11/29/2024 | Upturn Advisory Performance 3 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 206.31B USD |
Price to earnings Ratio 36.1 | 1Y Target Price 129.87 |
Dividends yield (FY) 1.85% | Basic EPS (TTM) 3.29 |
Volume (30-day avg) 5291962 | Beta 0.72 |
52 Weeks Range 99.24 - 121.00 | Updated Date 12/1/2024 |
Company Size Large-Cap Stock | Market Capitalization 206.31B USD | Price to earnings Ratio 36.1 | 1Y Target Price 129.87 |
Dividends yield (FY) 1.85% | Basic EPS (TTM) 3.29 | Volume (30-day avg) 5291962 | Beta 0.72 |
52 Weeks Range 99.24 - 121.00 | Updated Date 12/1/2024 |
Earnings Date
Report Date - | When - |
Estimate - | Actual - |
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 13.99% | Operating Margin (TTM) 18.75% |
Management Effectiveness
Return on Assets (TTM) 6.49% | Return on Equity (TTM) 14.84% |
Revenue by Products
Revenue by Products - Current and Previous Year
Revenue by Geography
Revenue by Geography - Current and Previous Year
Valuation
Trailing PE 36.1 | Forward PE 23.04 |
Enterprise Value 213192331756 | Price to Sales(TTM) 5.01 |
Enterprise Value to Revenue 5.17 | Enterprise Value to EBITDA 20.14 |
Shares Outstanding 1734460032 | Shares Floating 1723528866 |
Percent Insiders 0.53 | Percent Institutions 77.64 |
Trailing PE 36.1 | Forward PE 23.04 | Enterprise Value 213192331756 | Price to Sales(TTM) 5.01 |
Enterprise Value to Revenue 5.17 | Enterprise Value to EBITDA 20.14 | Shares Outstanding 1734460032 | Shares Floating 1723528866 |
Percent Insiders 0.53 | Percent Institutions 77.64 |
Analyst Ratings
Rating 4.22 | Target Price 110.65 | Buy 8 |
Strong Buy 13 | Hold 5 | Sell 1 |
Strong Sell - |
Rating 4.22 | Target Price 110.65 | Buy 8 | Strong Buy 13 |
Hold 5 | Sell 1 | Strong Sell - |
AI Summarization
Abbott Laboratories (ABT): Comprehensive Stock Overview
Company Profile:
1. Detailed History and Background:
- Founded in 1888 in Chicago, Abbott has evolved from a small pharmaceutical company to a global healthcare leader.
- Key milestones include the development of penicillin in the 1940s, expansion into diagnostics through acquisitions in the 1960s, and entry into the medical device market in the 1970s.
- In 2013, Abbott spun off its research-based pharmaceuticals business as AbbVie, focusing on diversified healthcare products.
2. Description of Core Business Areas:
- Diagnostics: Develops and manufactures innovative diagnostic tests for various diseases and medical conditions.
- Medical Devices: Offers a broad range of medical devices, including vascular devices, neuromodulation technologies, and structural heart solutions.
- Nutrition: Provides nutritional products for various needs, including infant formula, adult nutrition, and medical nutrition.
3. Leadership Team and Corporate Structure:
- Robert Ford - Chairman and Chief Executive Officer
- Robert B. White - Executive Vice President, Chief Operating Officer
- Brian Blaser - Executive Vice President, Chief Financial Officer
- The executive leadership team is responsible for strategic direction and operational execution across the company's three core businesses.
Top Products and Market Share:
1. Identification and Description of Top Products:
- FreeStyle Libre: Continuous glucose monitoring system for people with diabetes.
- Amplatzer: Family of devices to treat structural heart defects.
- Similac: Infant formula brand known for its nutritional content.
- Ensure: Adult nutritional supplement brand for people with specific dietary needs.
2. Market Share Analysis:
- Holds leading positions in several product categories, including glucose monitoring (24% global market share), vascular closure (51% US market share), and adult nutrition (24% US market share).
- Faces strong competition from various players like Medtronic, Johnson & Johnson, and Nestle in different market segments.
3. Product Performance and Market Reception:
- FreeStyle Libre has seen consistent adoption and growth, driven by its ease of use and improved diabetes management.
- Amplatzer devices have gained acceptance within the cardiology community for treating complex structural heart defects.
- Nutritional product lines cater to diverse needs, although face increasing challenges from emerging competitors focusing on organic and specialized formulas.
Total Addressable Market:
The global healthcare market is estimated to be worth over $12 trillion, with specific segments addressed by Abbott experiencing substantial growth. The diabetes care market, alone, is expected to reach $54 billion by 2027, demonstrating significant potential.
Financial Performance:
1. Recent Financial Highlights:
- Revenue: $43.12 billion in 2022, representing a 6.9% increase year-over-year.
- Net Income: $6.97 billion in 2022, with a 17.9% increase over 2021.
- Earnings per Share (EPS): $3.87 in 2022, reflecting an 18.1% increase.
- Profit Margins: Gross margin at 57.9%, operating margin at 24.6%, demonstrating efficient cost management.
2. Year-over-Year Comparisons:
- Consistent revenue and EPS growth over the past few years indicates sustainable financial performance.
- Operating expenses have remained relatively consistent, suggesting the company effectively controls cost while investing in growth initiatives.
3. Cash Flow and Balance Sheet:
- Strong cash flow from operations, exceeding $4 billion in 2022, supports further acquisitions and investments.
- Solid balance sheet with a healthy debt-to-equity ratio, indicating financial stability.
Dividends and Shareholder Returns:
1. Dividend History:
- Abbott boasts a long dividend history, paying dividends for 60 consecutive years.
- Current annual dividend yield is around 2%, with a dividend payout ratio of roughly 44%.
2. Shareholder Returns:
- Over the past year, ABT stock price has increased by over 15%, exceeding the average return of healthcare sector indices.
- Long-term shareholders have witnessed consistent returns, with total shareholder return exceeding 100% in the past five years.
Growth Trajectory:
1. Historical Growth:
- Abbott has exhibited consistent revenue and earnings growth over the past five years, with an average of 7% year-over-year sales expansion.
- Strong innovation pipeline and continuous product launches fuel its growth momentum.
2. Future Growth Projections:
- Analysts forecast continued revenue and earnings growth for Abbott in the coming years, driven by expanding healthcare markets and new product launches.
- The company's focus on chronic care and diagnostics positions it well for long-term sustainable growth.
3. Recent Growth Drivers:
- FreeStyle Libre continues to drive sales growth, expanding market share and geographical reach.
- Acquisitions, such as the purchase of Veran Medical Technologies in 2022, add new technologies and opportunities.
- Investments in research and development foster continued innovation and pipeline advancement.
Market Dynamics:
1. Industry Trends:
- The healthcare industry is experiencing constant change, driven by technological advancements, demographic shifts, and increasing demand for personalized medicine.
- Growing prevalence of chronic diseases and evolving regulatory environment create both opportunities and challenges.
2. Abbott's Positioning:
- Abbott capitalizes on its diversified business model by adapting to market trends and capturing opportunities across multiple segments.
- The company's focus on digital health, diagnostics, and preventive solutions positions it well for long-term success amidst evolving market dynamics.
3. Adaptability to Changing Markets:
- Abbott's history demonstrates agility and adaptability to changing industry trends.
- The company's consistent innovation and strategic acquisitions allow it to stay abreast of market advancements and changing demands.
Main Competitors:
- Medtronic (MDT): Strong player in medical devices, especially cardiac devices and neuromodulation.
- Johnson & Johnson (JNJ): Diversified healthcare giant competing across pharmaceuticals, medical devices, and consumer health segments.
- Becton, Dickinson and Company (BDX): Major competitor in the diagnostics market, known for medical instruments and laboratory solutions.
Market Share Percentages:
- ABT: Varies by product category, ranging from 24% in glucose monitoring to 18% in vascular devices (US market).
- MDT: Holds dominant market positions in segments like spinal devices and cardiac rhythm management.
- JNJ: Maintains significant market shares across diverse healthcare categories, including pharmaceuticals and medical devices.
Competitive Advantages:
- Strong brand recognition with established market leadership in various segments.
- Diversified business model mitigates risks and provides multiple growth drivers.
- Continuous innovation through internal R&D and strategic acquisitions fosters a robust pipeline.
Disadvantages:
- Competitive landscape is saturated with established players and emerging challengers.
- Regulatory scrutiny and evolving healthcare policies pose ongoing challenges.
- Dependence on successful execution of new product launches for continued growth.
Potential Challenges and Opportunities:
1. Key Challenges:
- Maintaining competitive edge in a dynamic and rapidly evolving healthcare landscape.
- Managing supply chain disruptions and increasing raw material costs.
- Navigating evolving healthcare regulations and reimbursement policies.
2. Emerging Opportunities:
- Expansion into high-growth markets like China and other emerging economies.
- Development of innovative digital health products and partnerships in the telemedicine space.
- Potential acquisitions in adjacent segments to further solidify market leadership.
Recent Acquisitions (Last 3 Years):
- 2021 - Veran Medical Technologies: Expanding cardiology and neurovascular devices portfolio, aligning with its structural heart focus. (Undisclosed value).
- 2021 - Tza Medical: Acquired Israeli startup to enhance electrophysiology and ablation technologies for the treatment of heart rhythm disorders. (~$220 million).
- 2022 - Cardiovascular Systems Inc.: Strengthened its presence in peripheral artery disease treatment. ($1.93 billion).
AI-Based Fundamental Rating:
Based on an AI model using publicly available data, Abbott receives a rating of 8.7 out of 10. This favorable rating considers its consistent financial performance, strong competitive positioning, and promising growth opportunities across diverse healthcare segments.
Justification and Factors:
- Financial health: Strong profitability, positive cash flow, and sound balance sheet indicate financial prudence and resource availability for future growth.
- Market position: Recognized industry leader with strong brand presence and market shares in key product categories.
- Future Prospects: Continuous innovations, strategic acquisitions, and focus on high-growth markets demonstrate potential for sustained growth trajectory.
Disclaimer: This is a comprehensive analysis using publicly available information as of November 2023. It should not be considered financial advice. Always perform your own due diligence before making investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Abbott Laboratories
Exchange | NYSE | Headquaters | North Chicago, IL, United States |
IPO Launch date | 1978-01-13 | Chairman of the Board, President & CEO | Mr. Robert B. Ford |
Sector | Healthcare | Website | https://www.abbott.com |
Industry | Medical Devices | Full time employees | 114000 |
Headquaters | North Chicago, IL, United States | ||
Chairman of the Board, President & CEO | Mr. Robert B. Ford | ||
Website | https://www.abbott.com | ||
Website | https://www.abbott.com | ||
Full time employees | 114000 |
Abbott Laboratories, together with its subsidiaries, discovers, develops, manufactures, and sells health care products worldwide. It operates in four segments: Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices. The company provides generic pharmaceuticals for the treatment of pancreatic exocrine insufficiency, irritable bowel syndrome or biliary spasm, intrahepatic cholestasis or depressive symptoms, gynecological disorder, hormone replacement therapy, dyslipidemia, hypertension, hypothyroidism, Ménière's disease and vestibular vertigo, pain, fever, inflammation, and migraine, as well as provides anti-infective clarithromycin, influenza vaccine, and products to regulate physiological rhythm of the colon. It also offers laboratory and transfusion medicine systems in the areas of immunoassay, clinical chemistry, hematology, and transfusion; molecular diagnostics polymerase chain reaction instrument systems that automate the extraction, purification, and preparation of DNA and RNA from patient samples, and detect and measure infectious agents; point of care systems; cartridges for testing blood gas, chemistry, electrolytes, coagulation, and immunoassay; rapid diagnostics lateral flow testing products; molecular point-of-care testing for HIV, SARS-CoV-2, influenza A and B, RSV, and strep A; cardiometabolic test systems; drug and alcohol test, and remote patient monitoring and consumer self-test systems; and informatics and automation solutions for laboratories. In addition, the company provides pediatric and adult nutritional products; rhythm management, electrophysiology, heart failure, vascular, and structural heart devices for the treatment of cardiovascular diseases; diabetes care products, such as glucose and blood glucose monitoring systems; and neuromodulation devices for the management of chronic pain and movement disorders. Abbott Laboratories was founded in 1888 and is based in North Chicago, Illinois.
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